SouthWood is part of the Capital Region Community Development District, a local, special purpose government entity authorized by Chapter 190 of the Florida Statutes, and created by the Florida Land and Water Adjudicatory Commission as an alternative method of planning, acquiring, operating and maintaining community-wide improvements in planned communities. A CDD provides the "solution" to Florida’s need to provide valuable community infrastructure generated by growth, ultimately without overburdening other governments and their taxpaying residents. Community Development Districts represent a major advancement in Florida’s effort to manage its growth. This allows a developer to establish higher construction standards, meanwhile providing a long-term solution to the operation and maintenance of community facilities.
The Capital Region Community Development District is organized like other local governments in Florida, in that the legislative body is composed of a five-member board known as the Board of Supervisors. The Board establishes District policy. The Board, by law, must hire a District Administrator and District Counsel. Staff members use the same formalities as a County Administrator and County Attorney. The Board, through review of advertised Requests for Qualifications, ranks and selects a District Engineer to address the District's engineering needs. District Administration staff and the District Attorney administer the operations of the District and implement the Board’s policies and contracts.